Last year,Twins Company reported $750,000 in sales (25,000 units)and a net income of $25,000.At the break-even point,the company's total contribution margin equals $500,000.Based on this information,which of the following is true?

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The total contribution margin at the break-even point is $500,000, which means that the fixed costs are also $500,000. Since the sales are $750,000 for 25,000 units, the sales price per unit is $30. The contribution margin per unit is $20 ($500,000 / 25,000 units). Therefore, the variable expense per unit is $10 ($30 - $20).

Last Year,Twins Company Reported $750,000 in Sales (25,000 Units)and a Net